Bradenton Real Estate News

INFO THAT HITS US WHERE WE LIVE New home sales fell 11.2% in January to a record low level. Existing home sales weren’t very pretty either, down 7.2%, though they’re UP 11.5% over a year ago. Let’s remember that last Fall we all thought the tax credit was going away at the end of November. Many sales got pushed into October and November, causing sales drops the next two months. But the median new home price is down just 2.4% year over year and the average price is now UP 3.7%. For an existing home, the median price is unchanged from a year ago and the average price is UP 2.6%. More evidence home prices are stabilizing, with some analysts expecting modest gains for the year. Supporting this, the Case-Shiller home price index was UP 0.3% in December, its seventh straight monthly rise.

Even more interesting was the news that this has actually been a very good decade for home prices. From January 2000 to December 2009, prices were UP 46%, making residential real estate a clearly profitable investment. And that’s not even factoring in the mortgage interest and real estate tax deductions homeowners get!

Finally, we’ve reported that the Fed will stop buying mortgage bonds at the end of this month and experts feared rates may edge up. Now analysts say mortgage rates might not move much at all. This stems from the fairly calm market reaction to last week’s hike of the Fed’s discount lending rate (which is NOT the key Fed funds rate). Seeing little or no move in today’s low mortgage rates is good news for the near term.

>> Review of Last Week

MINOR SLIP… Another volatile week on Wall Street, as investors drove stock prices down two days, then up two days, with all three major indexes slipping just slightly for the week. Things got off to a weak economic start with Consumer Confidence dropping sharply in February, much like the temporary drop in January 1996 when, curiously, there was another big blizzard on the East Coast.

Folks didn’t much like the drop in new home sales either, but good news did come with the Richmond Fed Index, which showed that manufacturing in the mid-Atlantic region went from -2 in January to +2 in February. Then there was Fed Chairman Ben Bernanke’s monetary policy report to Congress, which he serves up every six months. Bernanke assured everyone rates will remain low, a message loved by investors.

The up-and-down news continued with durable goods UP a solid 3.0% for January, showing business is investing in equipment, usually a precursor to their investing in jobs. Not just yet, though, as weekly unemployment claims edged up a tad. Then Friday we had the blockbuster news that real GDP for Q4 was revised UP to a 5.9% annual growth rate. People who still can’t see a recovery should also look at the Chicago PMI. This gauge of Midwest manufacturing hit a five-year high of 62.6 for February.

For the week, the Dow was down 0.7%, to 10325.26; the S&P 500 was down 0.4%, to 1104.49; while the Nasdaq skidded down 0.3%, to 2238.26.

Bonds ended the week pretty nicely as investors sought safety in a week featuring strong Treasury auctions. The FNMA 30-year 4.5% bond we watch ended UP 87 basis points, closing at $101.09. As a national average, mortgage rates inched up a little, but still remain at very low levels.

>> This Week’s Forecast

INFLATION, MANUFACTURING, HOMES, JOBS… This week has everything! We start off with PCE, the Fed’s favorite reading on inflation, followed by the ISM take on the state of manufacturing, a sector that’s been leading the recovery. Thursday, Pending Home Sales looks to the near future of the housing market. Then the week ends with the all-important February jobs report. We will be looking for some encouraging signs on that front.

>> The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of March 1 – March 5

>> Federal Reserve Watch

Forecasting Federal Reserve policy changes in coming months In Congressional testimony last week, Fed Chairman Bernanke recited his familiar mantra that interest rates should stay low for “an extended period of time.” Now very few economists feel the Fed funds rate will rise during the first half of this year. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%-0.25%

Probability of change from current policy:

The big question for home buyers and sellers today is: “Where are home prices headed?” People want to know if now is a good time to buy or sell, or if they should wait. We all need to stay on top of trends in real estate values — so what’s a good way to analyze the situation?

Yale economist Robert Shiller states it bluntly: “If you look at the trend in rents to see where housing prices are headed, you’re looking at the right measure.” Shiller is the co-developer of the S&P Case/Shiller Home Price Indices that monthly track residential real estate values nationally and in 20 metro areas.

Traditionally, people have been willing to pay a modest premium to own a home rather than rent it. Recent studies report that in 1999 rents averaged 87% of the after-tax mortgage payment for houses and condos of similar size in the same neighborhood.

When home prices took off, this percentage changed. By mid-2006, rents had fallen to less than 60% of after-tax mortgage payments. In some markets, owners were paying twice as much as renters for a similar property in the same neighborhood. In a few places, owner monthly payments were three times average rents.

The 87% ratio of rent to ownership cost for 1999 is a good benchmark because it stayed around that level throughout the 1990’s and the steep rise in home prices hadn’t really begun.

With that as our guide, we can conclude that home prices at last appear to be stabilizing. By the end of October 2009, rents on average were up to 83% of ownership costs!

Conditions vary from market to market, so check your own area. But with historically low mortgage rates, plus the homebuyer tax credit, this could be a great time to be buying or selling.... Have a great month!

The government reported our first quarter of positive economic growth last week, indicating the recovery has begun. Yet investors kept the Dow moving up and down over 100 points four out of the five days, ending the week with a startling 249-point drop. Was this a bull market correction, or the return to a bear market? Who knows? The only thing certain is that investors aren’t quite sure the economy is back on track.

Makes you wonder what it will take to convince them. The initial estimate for Q3 real GDP revealed the economy growing at a 3.5% annual rate — way better than expected and the first rise in GDP in over a year. Happily, most of the advance was driven by consumption. Q3 GDP also showed home building UP at a 23.3% annual rate, its fastest rise since the ’80’s. Plus, Q3 corporate earnings reported so far show over 80% of the companies beating estimates, the highest rate in history.

On the jobs front, Initial Unemployment Claims dropped and the 4-week moving average hit a new low in the recovery of 526,000. Continuing Claims fell to 5.8 million. Positive news also included Durable Goods Orders UP for September, their fourth boost in six months. Most impressive of all, the Chicago PMI measuring Midwest manufacturing, shot up to its highest level in over a year. And the Richmond Fed index for Mid-Atlantic manufacturing logged its sixth straight month in expansion territory. All are favorable signs for U.S. manufacturing.

Finally, we had the good news covered in last week’s Inside Lending Bulletin that the Senate passed an extension of the first-time homebuyer $8000 tax credit, with higher qualifying income limits and adding a $6500 credit to buyers who have owned their homes at least 5 years. Let’s hope the House passes it too. Finally, the House and Senate extended the ability of Fannie Mae, Freddie Mac and the Federal Housing Administration to back conforming loans in high-cost areas, up to $729,750 through all of 2010. These higher limits would have expired at the end of this year.

Last week September New Home Sales were reported down 3.6% for single-family units. But the supply of unsold new homes is just 7.5 months and inventories, at 251,000, are down 56.1% from their mid-2006 peak and at their lowest level since 1982. The sales drop followed five straight months of sales increases and some observers felt the decline may have come from more aggressive pricing by sellers, actually a bullish sign for the housing market.

Indeed, the median new home price was UP 2.5% for September, a bigger than usual gain for the time of year. The average price went UP 10.2%, the biggest September rise on record. Finally, the average price of new homes sold — $282,600 — was only 1.6% lower than last year. Speaking of prices, the Case-Shiller index reported home prices up in August for the fourth month in a row. The average of the 20 metro areas measured showed a 1.2% gain.

OCTOBER-2009 Newsletter Housing Trends eNewsletter

Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.

Please click here to view the OCTOBER-2009 Newsletter Housing Trends eNewsletter.

If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report.

New or Newly Converted Condos:

To determine project eligibility on current projects with Fannie Mae go to www.efanniemae.com

click Single Family tab

click Reference materials

click Accepted Condos

click Appropriate State and review expiration date

Established Projects (90% sold & conveyed and owners control HOA)

Email opuscondospotapproval@wellsfargo.com to see if we have project approval.

If not, can submit to BPAG using streamlined “Established Condo” approval process

Possible FHA approved Condos:

https://entp.hud.gov/idapp/html/condlook.cfm

Sort by Project Name, City and/or State

FHA Spot Approval:

Must be 90% sold and closed

Must be 51% o/o or 2^nd home

Owners must have controlled HOA for 12 months

See FHA 921 and Answer key on Regional Builder Website

** Make sure to get a 921 filled out and review for the following:

1. # total units, sold and closed and investor %

2. Ensure no more than 15% of total units are delinquent on HOA dues

3. Ensure no person or entity owns more than 10% of the units

4. Ensure proper insurance coverage including Fidelity Insurance

Before adding data to The Internet, you should define which form of online communication you are intending to employ…

Announcements: These are statements such as, “Selling Lakers tickets, anyone interested?” or “Hosting a filmmaker panel tonight at 8pm.” They communicate who, what, where, when data for those that are interested.

Open Queries: These are public questions, such as “Moving to Seattle next month. Can anyone recommend a physical therapist?” or “Seeking advice on buying my first guitar.” These are intended to generate open commentary, discussion, or even debate. Very useful when you want to get feedback from multiple readers.

Private Messages / Email: These are sent from one person to another. “Bill, are you available in June for collaborating on a blues album? I can pay your travel expenses” or “Sorry I couldn’t make it last night. My uncle kept me on the phone for 2 hours, he is having a crisis.”

Instant Message: These are for immediate, active discussion, in real-time. These are convenient when you and / or your friend is at work and you want short bursts of conversation that do not involve talking on the phone.

Text Messaging: These are most suited for instances when you want to locate someone in a loud concert, send a quiet reminder during a meeting, or to deliver a phone number or address to someone. When simply using your voice is not an option.

Personal Journals: These are for keeping track of your own personal activities, thoughts, and feelings, so you can refer to them later for contemplation or analysis. “Went to store, started feeling better. Hoping I can go to Disney Hall tomorrow night,” or, “Thinking of eating some Pizza. Missing Kelly.” No one needs to read these but you.

That means that Private messages don’t go on Walls. Personal Journals are not Announcements. Emails are not Instant Messages. Text Messaging is only a backup for when you can’t or don’t want to actually talk to a human. Never, ever post flirtatious or passive-aggressive little snipes or lobs that are intended to make people ask more questions. Streamline your messages and take into consideration who needs to read them and who does not. (This also goes for photos!)

Let’s keep The Internet clean and organized, and save real, personal interaction for real people. Thank you.

After the prior week’s rally, last week showed more modest stock market gains. Continuing to fuel the positive vibes were three encouraging economic factors. 1) Money appears to be flowing a little faster judging from the latest retail sales and housing starts. 2) Mark-to-market accounting reform seems to be on the way, which should give banks more capacity to lend. 3) The Fed is showing it’s willing to throw a lot of money into the effort to fix the financial system and get us out of this recession. Incidentally, Chairman Bernanke also told “60 Minutes” he expected the recession to end in 2009 and he’s confident about the US economy long term.

Everything of course wasn’t rosy. Industrial Production was down slightly more than expected for February and was revised downward for January. Wednesday’s Consumer Price Index (CPI) came in a little higher than forecast, inspiring some inflation concerns.

The positive news began with the nice jumps in housing starts and building permits covered above. These could also help improve revised forecasts for Q1 GDP. But the big news was the Fed’s surprise announcement of its massive efforts to ease credit for consumers and small businesses. With the market gaining as much as 20% over its March 6 low, enough investors took profits to keep this week’s gains modest.

The Dow inched UP 0.8% for the week, to 7278.38; the S&P 500 edged UP 1.6%, to 768.54; and the NASDAQ gained the most, moving UP 1.8%, to 1457.27.

The Fed’s announcement that it would buy as much as $300 billion in 2-10-year Treasuries in the next six months sent prices up and yields down. After the announcement, the yield on the benchmark 10-year Treasury fell half a percentage point, its biggest daily slide since October 20, 1987. But the yield ended the week down about a quarter point, at 2.645%. With the Fed even more in the game to keep mortgage rates down, the rate situation should stay attractive to borrowers. 

The best housing news came out of the Fed’s meeting last Wednesday. To help the housing market by making sure mortgage rates remain at their current historically low levels, the Fed said they would purchase up to $1.25 trillion worth of mortgage-backed securities issued by Fannie Mae and Freddie Mac. This is $750 billion more than they’ve already pledged. Sunday on CBS’s “60 Minutes”, Chairman Ben Bernanke said that the Fed’s buying of mortgage-related securities “seems to have brought down mortgage rates significantly. It allows people to refinance and to get out of high-rate mortgages.” To help things in private credit markets, the Fed also committed to buy up to $300 billion worth of long-term Treasuries.

Mortgage rates certainly are at great levels. The average rate on 30-year fixed-rate mortgages is over one percentage point lower since the Fed announced its program to start buying agency mortgage-backed securities last November. Although the Fed made its latest moves to ensure rates stay low into the future, the media got all excited about the prospect of rates dropping even further. But it isn’t clear what lenders will do – especially when demand picks up, as it already has. And some experts are concerned this huge expansion of the Fed’s balance sheet (it’s basically “printing” more money) will lead to inflation – and higher interest rates.

Tuesday, housing starts for February came in UP 22.2% to an annual rate of 583,000 units. Most of the boost came from multiple-family units, but single-family homes were also UP 1.1% – to 357,000 units per year. New building permits rose 3.0% for February to an annual rate of 547,000 units, with single-family permits UP 11.0%! Some experts feel these numbers may point to a home building turnaround that could begin late this year and help boost the economy in 2010 and 2011.

Suprise! You spent all that money on a fance new PC or laptop hoping to speed up your user experiance only to see an agonizing start up time day after day.

So  you would think it’s just a bloated OS causing the long load times. Well I say nee, nee my friend. Nee nee…

Seems that there is a fancy little setting that needs to be flipped on that is unchecked out of the box. I was happy when a friend passed on this windows secret and now it’s time to share.

As a default, Vista only boots using a single core processor. Most of us now have atleast a dual core centrino laptop or intel core two desk tops we are working with. So let’s review the steps nessicary to boot using all available cores to get things really humming.

1. click the windows start button and type “msconfig” in the search box and open the msconfig program.

2. Navigate to the BOOT tab and click on the “advanced” button

3. You will see a crazy little place in the top left for you to change to the appropriate number oc core processors available. Make the change to match your system, mine was from one to two cores.

4. check the box “Detect HAL” just below the core count you just changed and consider setting the memory to what you got over on the right too.

5. Hit the apply and OK buttons till you are blue in the face and then happily restart you PC as requested by windows vista.

ZOOOOM… your off now using multi core boot! Should cut your boot time by atleast 30%!!!

Dear Mr. President. 

   Re:  COMMON SENSE IN GOVERNMENT

POSITION:  Kindly accept this application for the newly created position of CZAR OF ECONOMIC COMMON SENSE.  Hopefully, you’ll consider making this a cabinet level position because many Americans understand that common sense is sadly mission from government today.

STATEMENT OF NEED:   The United States of America is in recession.  Strong and innovative management of the economy is essential for the viability of financial health of the citizens of this great country.  Management of the economy of the country has been reactive, wrongheaded and dangerous to the financial stability of the American family. 

STRATEGY:  I suggest that you make this position a “Recess Appointment” at the first opportunity.  Sadly, there is little hope that any Congress, present or future, would approve anyone for a post in your administration that required Common Sense because the concept of Common Sense is alien to a Congress that can be relied upon to seek personal gain over benefit to country. 

The legislative records of the present Congress has a track record that:

• Puts Party above constituent.
• Rewards campaign contributors with tax advantages.
• Manipulates legislative order to reward cronies.

We know from your pronouncements since winning the election to the highest office in the country, that you are a man of open mind and flexibility. 

PRIORITY:  The economic condition in the United States is dire.  The former administration was one of reaction and not one of leadership.  While the new appointments to the economic management posts in your administration have the credentials for strong, sensible leadership, sadly, they have no history of common sense in any office in which they have served.  It is necessary that the citizens of the United States have a voice for common sense in your cabinet. 

Management of the Economy of the United States is critical and deserves priority over other interests. Without sound economic management, the U.S. taxpayers will not be able to fund the interests of the environmentalists, organized labor, industrial manufacturing, health services, scientific research, foreign trade, and other well represented special interests. 

WHY A CZAR OF ECONOMIC COMMON SENSE?  A high percentage of American citizens, the families and individuals who pay taxes to fund the budget of the United States are in a diminishing financial condition.  Not only is the income of the average American providing less and less buying power, the primary financial asset of most Americans, the equity in their homes has vanished. 

THE PROBLEM WITH THE ECONOMY:  The American tax payer has lost their capital, their credit, their savings, their leverage, their voice.  The American home owner finanances the building industry, the home improvement industry, the real estate industry, the home mortgage industry, the home furnishings industry, local public schools and more.

THE FINANCIAL INDUSTRY PROFITED FROM ILLEGAL ACTS PERPETRATED AGAINST AMERICAN BORROWERS.  The Department of the Treasury and Board of Governors of the Federal Reserve reward the criminals on Wall Street with about $350,000,000,000 to replace their lost capital and encourage the banks and financial institutions to resume providing consumers with credit to finance the purchase of homes, automobiles and consumer goods. 

THE FINANCIAL HOUSES AND BANKS TOOK THE MONEY.  Yet, mortgages loan approval is more difficult than at any time in the past 30 years.  Automobile financing is at an all time low causing the callapse of the American Automobile Manufacturing companies and the chain of businesses that provide jobs for about 10% of the American tax payers. 

Giving money to the financial industry that designed the financial instruments that caused the decline of the housing industry made no COMMON SENSE.  It is clear that the President of the United States, the Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve and other decision makers do not understand the critical nature of the health of the housing industry and have made policy decisions that made so little common sense, that they defies logic. 

COMMON SENSE dictates that the first priority of the Government of the United States is the financial health of the American home owner.

I WANT THAT JOB.  Someone needs to look out for the folks.

The U.S. government passed a $700 billion economic bailout package in an effort to stabilize the flailing banking sector. So far, it hasn’t worked as hoped and the financial crisis has deepened since the law was approved. That’s the bad news.

The good news is that there is a lot more than help for just banks in the 451-page legislation. Lawmakers added hundreds of other “sweeteners” to make the bill more popular with the public. See if you can benefit from any of the following provisions:

More insurance for bank deposits: Now your bank deposits are protected up to $250,000 for each account. Formerly, the Federal Deposit Insurance Corporation (FDIC) backed your deposits up to $100,000. The increase is temporary, but is likely to be extended.

AMT Reform: Fewer taxpayers are going to get hit with the dreaded Alternative Minimum Tax, a parallel tax code that was originally intended to make sure wealthy people paid their fair share of taxes, but which has increasingly slammed middle-income earners. Basically, unless you make more than $100,000 for single taxpayers or $175,000 for married taxpayers filing jointly, you shouldn’t have to worry about the AMT due to the change.
Easier to get your mortgage terms modified: The new law asks Federal agencies to encourage companies that service mortgages to help their borrowers who are having trouble making payments modify their loans so they become more affordable. It sounds a little vague, but lenders are already responding to government prodding and agreeing to modify mortgage terms for some distressed borrowers. Bank of America, for example, announced a new plan Oct. 6 that will aid certain former Countrywide mortgage holders.

Caps on executive pay: Again, the terms here are a little murky, but basically executives of firms that participate in the bailout could have to repay some of their bonuses if the funds were awarded based on inaccurate financial statements. Execs also should not get so-called “golden parachutes” or large payments if they are fired. This provision may have psychic, rather than monetary benefits for those Americans who are angry about the high pay awarded some of the same bankers who have presided over the economic crisis.

Banks may be less at risk of failing due to accounting issues: In a controversial move, the law asks the Securities and Exchange Commission (SEC) to consider changing accounting rules that require banks to value securities at market prices even when there are no buyers. That so called “mark-to-market” requirement means banks have to account for some securities as if they are worthless (putting them in bad stead with rating agencies), even if they are sure the securities will eventually be worth something.

Insurers have to treat mental health like other illnesses: The law requires health insurance companies to cover treatment for mental illnesses the same way they cover any other disease. This became part of the law due to procedural requirements. The Senate’s financial rescue plan was actually added to a bill for “mental health parity” that passed the house last March.

Assorted niche tax breaks: The bailout plan has been faulted for including lots of pork – provisions that benefit a small number of people, but that can be key to a politician’s reelection bid. The law contains tax breaks that benefit makers of wooden arrows used in children’s toys, the rum industry of Puerto Rico and the Virgin Islands, wool manufacturers and racetrack owners to name a few.

More development of alternative energy: The law contains extensions for some tax breaks intended to spur the use and development of alternative energy. Homeowners can continue to get tax credits to cover part of the costs of solar panels, windmills, geo-thermal heating systems and electric cars. Companies that invest in alternative energy technologies will also continue to enjoy some nice tax breaks.

Lower taxes in the future? A part of the law which invites skepticism currently, allows the government to take equity stakes in Wall Street firms that participate in the bailout. Theoretically these stakes could one day be quite valuable. Another provision states that after five years, if there are any losses due to the bailout, the government will recoup the shortfall from the financial services industry. In theory, one day this could mean increases in government coffers without tax hikes for individuals. That would be nice.

What do you see? How is this going to impact your life and how quickly will you feel the relief?

Forget the upscale remodel. You can get a whole new look for a few thousand dollars.

You’re longing to replace those dark oak cabinets, avocado appliances and worn countertops in your kitchen. But the $50,000 to $100,000 price of a high-end renovation and the thought of living on kung pao for three months during construction make you queasy.

Plus, in today’s buyer’s market, a full-scale renovation doesn’t return what it used to: in 2006, home sellers got only 80 percent of their kitchen remodeling costs back, according to the National Association of Realtors, down from 91 percent in 2005.

But that doesn’t mean you have to live with a tired look forever. As long as the layout is good and the cabinets are sturdy, you can transform a kitchen for just $1,000 to $10,000 by dressing up what’s already there.

“And you’ll probably see a dollar for dollar or better return on the investment when you sell,” says Baltimore home appraiser Terry Dunkin, who is president of the Appraisal Institute, a professional standards organization.

Keep to neutral colors such as white, cream or beige and natural materials (like wood and stone) so the results won’t soon go out of style. You may also want to hire a professional kitchen designer ($250 to $500) to help you choose colors, products and materials that look good together (check nkba.org and asid.org for certified designers who offer hourly rates). Then pick your projects according to your budget and your priorities.

If you have a few hundred dollars to spend

Replace the ceiling fixture There’s no reason to live with an ugly ceiling light that causes eye-strain. For $25 to $250 you can buy a simple fixture that matches your cabinet hardware. If you aren’t confident in your knowledge of electrical wiring, it’s worth it to spend $200 to $300 to hire an electrician to do the work.

Put in laminate flooring If your kitchen floor is level with the floors in the adjacent rooms, you can make old linoleum, sheet vinyl and chipped tiles disappear by installing laminate flooring right over them. Laminate costs $1 to $5 a square foot and looks like wood, stone or tile, but it’s actually photographs of those materials under a clear plastic wear surface. The pieces snap together without nails or glue and are a cinch for handy homeowners to install.

Give the cabinets a new life Spending $3 to $10 or so a cabinet to replace shiny brass knobs and pulls with brushed nickel will instantly modernize their look, says Martha Kerr, a 30-year-veteran kitchen designer in Portland, Ore.: “Or have some fun with colored glass, retro 1950s plastic or little metallic vegetables.” Just make sure that any hardware you select matches the existing holes.

As long as your cabinets are solid, a new coat of paint will make them appear fresher. While you’re at it, you can install doors with wood, leaded glass or punched tin panels ($50 to $150 or so a door) and paint the frames to match them. Or eliminate some doors entirely for an open display look (free). You can fill unwanted hardware holes (use Bondo, the autobody filler) before painting.

Refinish the appliances If your appliances sport a dated color, send them to an appliance refinisher (look in the phone book for a local shop). For a few hundred dollars (about $150 for a stove door; $250 for a whole refrigerator), they will re-enamel the surfaces in the hue of your choice, such as black, stainless steel or barn red.

If You Can Spend a Few Thousand Dollars

Reface the cabinets You can get a gorgeous new maple or cherry finish for your old cabinets by hiring a refacing company to replace the doors and drawer fronts and cover the cabinet boxes with a matching veneer ($4,000 to $6,000).

“That’s less than half the cost of new cabinets,” says Dave Haglund, president of Kitchen-Tune-Up, an Aberdeen, S.D. refacing and remodeling company. Another benefit: While replacing the cabinets will take two to three months, a complete refacing job can be done in three days. Refacers can also install additional cabinets, resize appliance openings and replace the countertops as part of the job (add one day and $3,000 to $6,000).

Take your home outside

Update the backsplash A four inch- high band of laminate or tile above the sink makes your kitchen appear outdated, says Richard Gaylord, a Long Beach, Calif. realtor and president-elect of the National Association of Realtors. Replace it with a full backsplash that fills the 18-inch space between the counter and the upper cabinets (don’t worry, it need not match the countertops).

In fact, you can use that space for some do-it-yourself creativity; try using tiles of colored glass or stone ($300 to $750 for the entire backsplash in an average-size kitchen), wallpaper ($50 to $100), beadboard paneling ($100 to $150) or tin ceiling tiles ($400 to $800) to fashion the look you prefer.

Add new lighting If your kitchen has a single ceiling light, it probably casts an annoying shadow over the food whenever you cook. An electrician can add a few recessed ceiling lights ($300 to $500) to brighten the entire room and under-cabinet lights ($200 to $400) to illuminate the work surfaces.

Uncover the wood floor Most houses built before World War II have wood floors hiding under the linoleum, and there is no better floor for a kitchen, says Sandy Gordon, an interior designer in Madison, Wis.

“It’s gentler underfoot than tile and more forgiving on dropped dishes, and today’s finishes are superdurable.” If you’re not comfortable ripping out the old layers of flooring, sanding the wood and applying polyurethane, you can hire a hardwood flooring company to do the job for about $5 to $7 a square foot.

Replace the appliances New appliances will make your kitchen appear more up to date and will also improve its ergonomics and energy efficiency. Buy moderately priced equipment ($2,000 to $10,000 and up for a refrigerator, range, microwave and dishwasher) in stainless steel for a modern look. If you can’t resist that $10,000 stove, consider taking it with you when you move.

Whatever you decide to do, keep in mind that just a week of an all-takeout diet will add hundreds more to your renovation costs. So before you get started, set aside some essential foodstuffs, perhaps a microwave, a mini-fridge and – most important – the coffee maker.

home improvement

(9/17/07) – Lee Forbes of Premier Team inc. has successfully completed the REALTOR e-PRO course to become one of a select few real estate professionals to earn the prestigious certification offered through the National Association of REALTORS.®

The REALTOR e-PRO certification course is an educational program unlike any other professional certification or designation course available, comprehensive and interactive. It is specifically designed to provide real estate professionals with the technology tools needed to assist consumers in the purchase or sale of a home.

With more than 70% of consumers beginning their real estate research on the Internet, e-PRO certified agents have the experience and expertise to meet the demands of today’s buyer and seller.

"The real estate industry has undergone a fundamental change over the past several years," said Lee Forbes of Premier Team Inc. "A majority of consumers are taking the time to conduct their own research prior to contacting an agent. In turn, real estate professionals must be knowledgeable of how technology can assist them in serving the needs of the buying and selling public."

The exclusive REALTOR e-PRO certification course is presented entirely online and certifies real estate agents and brokers as Internet professionals. Because of its innovative design, students are able to complete the course at their own pace, when and where they want, via any Internet connection. The course is designed to help REALTORS stay at the leading edge of technology and identify, evaluate and implement new Internet business models.

Once completed, the e-PRO certified real estate professional joins the ranks of a special community of highly skilled and continuously trained professionals who provide high quality and innovative online-based real estate services.  Consumers can identify the e-PRO through the exclusive e-PRO Internet Professional logo.

Both the content and the delivery platform were created by San Diego-based technology company InternetCrusade®. The course instructs participants in the professional use of e-mail, the development of an interactive Web site, and the use of online research tools. Graduates use the skills they’ve acquired to provide clients information on properties for sale, local communities, and the local real estate market.

For more information, e-mail Lee Forbes at Results@LeeForbes.com or call 941-725-4258.

Thank you kindly,

Lee Forbes     GRI, ABR

Premier Team Inc., REALTOR©

3850 SR. 64 East

Bradenton, FL 34208

Direct: 941-725-4258

Toll free 877-646-8326 

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Nearly a full third of households are still renting…but if you are one of them, you could be paying a hefty price.

Additionally, the children of the baby boomer generation are close to or at the home buying age, but these “echo boomers” could mistakenly decide to put off the purchase of a home because of all the noise about a “bubble” in home prices.

Is there a “bubble”? The simple answer is “no”. Even if interest rates move a bit higher, it won’t be enough to cause a nationwide slide in home prices. The key to a healthy housing market is the job market. If the payment on a new home might be slightly higher due to increased interest rates, it generally won’t stop someone from purchasing the home of their dreams…but if they feel their job is in jeopardy, it might be enough to stop them from making a move. So with the currently low levels of unemployment and the beefy gains in job creations, it looks like the housing market will remain vibrant. Although it will be difficult to sustain the double-digit gains that much of the country has seen, price declines are highly unlikely. Expect a more moderate rate of appreciation, perhaps closer to the historical 6-7% range, which is still very good.

It is important to note that housing tends to be localized. So if the job market in your area is weak, housing prices could under perform the rest of the country.

But this talk of a housing bubble has been going on for a few years now, and those who were unfortunately victimized by continuing to rent instead of purchasing a home are painfully mulling over their missed opportunity. But is it too late? Even with the more moderate levels of appreciation expected…procrastinating on that home purchase could cost you a bundle.

Let’s look at an example. If you are paying rent at $1,500 per month and your landlord increases your payment by a modest 5% each year, you would wind up paying just about $100,000 over a 5-year period! Worse yet, after forking over $100,000, you still would have nothing to show for it.

And speaking of having nothing to show for it – how about any improvements you might make to a rental property? It’s not uncommon for renters to freshen up the paint, install new light fixtures or plant some nice flowers outside. But guess what…all your efforts, labor and the benefit of that improvement belong to the landlord, not to you.

With the extensive variety of programs to help buyers obtain a mortgage with little to even zero down payment, the very same money could have been used towards home ownership. Even using a standard 30-year fixed program, a mortgage of $300,000 could be obtained with a total monthly mortgage payment – including property taxes and insurance – of around $2,200. I know taxes and insurance in Florida are higher.  This is just an example:  Assuming a 25% tax bracket, this would be equivalent to the average amount spent on rent during the same period after your tax benefit.

And the benefits of home ownership are quite considerable. Because the mortgage is being paid down each month, equity is being built. After 5-years, the $300,000 mortgage would be reduced to $279,000, adding $21,000 to your net worth. Home appreciation can add an even bigger chunk. If your home appreciates at a modest 5% per year, the value of a $300,000 home would increase to $383,000 after 5-years. Subtract the remaining mortgage of $279,000 and you have a whopping $104,000 of additional net worth! Even if the appreciation level were at 3.5% or half the historical norm, the result would be $77,000 of additional net worth.

But if laying out the initial increase in monthly payment and having to wait for your tax benefit to show up next April is a tough nut to crack, the IRS wants to help. Instead of waiting to file for the tax benefits derived from your new home purchase, you can simply adjust the amount of your withholding. This allows you to have less tax withheld from each paycheck so you can handle the new mortgage payment more comfortably throughout the year. In essence, you are taking your tax refund as you go instead of letting Uncle Sam hold it all year, interest free.

Visit http://www.irs.gov/ and use the IRS withholding calculator. This very handy tool can quickly show you the effect a change in withholding will do to your net paycheck. Remember to balance this with the expected refund and it is always a good idea to check with your tax advisor.

Don’t be victimized by the bubble hype. Buying a home is a big step, but it is almost always one in the right direction.

bubble

Fed cut. Good for the Economy ~ Bad for Inflation

The long awaited Fed decision arrived with a bang! The Fed surprised many economists and traders with a half percent cut in both the Fed Funds and Discount Rates. Stocks soared higher and enjoyed their largest gain since 2003.

What does the Fed cut mean? Rates on consumer debt, car loans, and Home Equity lines will all benefit. But because Home Loan rates are tied more closely to inflation, it is not uncommon to see less of a reaction…or even an opposite reaction in mortgage rates.

The Fed cut also hurts rates of return on investments, which gives foreign investors less incentive to invest in US securities. This has sent the Dollar much lower against the currency of most major foreign countries. This makes foreign goods more expensive for us to buy, which adds to inflation pressures.

Overall, the Fed cut is good news for the economy, but may nudge inflation a bit higher.

— Do you think you never have or never will experience work burnout?

Consider these statistics:

• The American worker has the least vacation time of any modern, developed society.

• In 2005, 33 percent of workers said they would be checking in with the office while on vacation.

• One-half of workers reported they feel a great deal of stress on the job.

• Forty-four percent of working moms admit to being preoccupied about work while at home and one-fourth say they bring home projects at least one day a week.

• Nineteen percent of working moms reported they often or always work weekends.

• Thirty-seven percent of all working dads said they would consider the option of taking a new job with less pay if it offered a better work/life balance.

• Thirty-six percent of working dads reported they bring work home at least one day a week and 30 percent say they often or always work weekends.

These statistics, taken from CareerBuilder.com surveys of American workers, demonstrate the pressures employees in the U.S. are under to be available to the office, despite responsibilities — or plans — away from work.

All this, coupled with longer work hours and many individuals handling the workloads of two, can easily lead to worker burnout.

If you think burnout on the job is just an excuse used by the weak to get out of responsibilities, think again.

Stress and burnout can affect your immune system and has been linked to migraines, digestive disorders, skin diseases, high blood pressure and heart disease. It causes emotional distress as well.

“Job burnout is a response to work stress that leaves you feeling powerless, hopeless, fatigued, drained and frustrated,” writes Dr. Audrey L. Canaff, a UC Foundation Assistant Professor in the Counseling Program at the University of Tennessee at Chattanooga in her article on WorkplaceBlues.com. “But since job burnout is not an overnight occurrence, it’s important to recognize its early signs and to act before the problem becomes truly serious.”

Consider these five warning signs of burnout:

Sign No. 1: Your co-workers are walking on eggshells around you.

If you find yourself becoming cranky and irritable with co-workers you used to get along with, it may be more than just typical interpersonal dynamics.

Sign No. 2: You come in late and want to leave earlier.

You used to wake up in the morning excited for another day, but now every day you dread heading into the office. Once lunch passes you start watching the clock, counting the minutes to the end of the day.

Sign No. 3: Apathy has replaced enthusiasm.

You feel no motivation, no sense of accomplishment and have no desire to be challenged. Those who have burnout lose their motivation to perform, as well as their feelings of pride for a job well done.

Sign No. 4: You’ve lost camaraderie with co-workers.

You’re no longer interested in the company network. You used to go to lunch, go out for drinks and participate in other company functions but now have no desire in socializing in or out of the office.

Sign No. 5: You’re feeling physically sick.

You always feel exhausted, have headaches, feel tension in all of your muscles and are having trouble sleeping. These physical signs are common indicators of job stress, and demonstrate that this can turn into a physical problem.

If you are experiencing these symptoms, it’s time to make some changes.

You can start by talking to your boss or someone in your human resources department about how you can confront the problem together by redefining deadlines, delegating or outsourcing a project or two. In her book “Stress Management for Busy People,” Carol A. Turkington recommends taking these proactive steps:

Learn to say no.

Reevaluate your goals.

Reduce your commitments at work and at home.

Learn stress management skills.

Get plenty of rest and eat a healthy diet.

Finally, give yourself a break.

This means taking your vacation days, no matter how important your job is, and taking little breaks every day to re-group, re-energize and unwind.

Remember, if you don’t take care of yourself in the office, your work will suffer and your health may pay the price, too.